THE STORY OF BITCOIN CASH.

THE STORY OF BITCOIN CASH.

By Franklinlee | All-things-Crypto | 24 Mar 2020




A while ago, a talked about what a Hard Fork and a soft Fork. Well Bitcoin Cash is one of the most popular examples of a Hard Fork. What exactly is Bitcoin Cash though and how did it come about in the first place.



 

Bitcoin Cash is arguably on the list of the top 20 most popular Cryptocurrencies. It is also arguably (again and agreed by many) the most successful Bitcoin hard fork. While there have been many other projects hosted off the Bitcoin Blockchain, not many hard forks have managed to gather the success and popularity that Bitcoin Cash has. With over $4.08 billion in market capitalization as at the time of writing this piece, that places Bitcoin Cash on number 5 by Coin MarketCap on the list of biggest Cryptocurrencies by market cap. Let's dig deep and find out what Bitcoin Cash is.



 

Bitcoin was created in 2008 by Satoshi Nakamoto (that we all know). Bitcoin was meant to be a decentralized P2P (peer-to-peer) electronic cash, to be used to transfer money from one hand to another in a cheap fast, and borderless way without the need for a centralized entity to control the supply or overview and control it. 9 years after  Bitcoin was introduced, some of its community members began struggling with its scalability. With it's boom and rise to fame in 2017, the transaction fees on the Bitcoin blockchain was becoming very expensive and unbearable for some. Some community members began to feel an upgrade was long overdue and they proposed a block size limit increase. Their logic was that the block size had to be upgraded for Bitcoin to solve it's scalability issues. At the time, Bitcoin blockchain block size had an upper limit of 1 MB, and these community members felt it could be and had to be upgraded to 8 MB. 






However, some other members of the Bitcoin community didn't agree with this block size increase. They argued that if the block size was increased it would in turn increase transactions inside each block and this would then decrease the transaction fees. The miners sure didn't support this as it would mean more work for them, and some others also argued that Bitcoin was never really meant to be used as a peer-to-peer currency (even after it was stated in the Whitepaper). They were of the view that the real goal of Bitcoin was to be used as a store of value, like what Gold is being used for.




As you can already deduce the two parties didn't come to an agreement and on August 1, 2017 the split happened at block 478558. The new forked version was called Bitcoin Cash (BCH) and voila that's how we came about Bitcoin Cash. Their biggest advantages over Bitcoin is that Bitcoin Cash combated the slowness and high transaction fees of the original Bitcoin. They believe that Bitcoin (their Bitcoin that's BCH) needs to have low transaction fees and fast transaction speed for it to fulfill the dream that Satoshi Nakamora had which the original Bitcoin has veered away from accomplishing. Bitcoin Cash definitely has a bigger block size than Bitcoin and at the time of their hard fork, the Bitcoin Cash block size was 8 MB. Currently, Bitcoin Cash blockchain’s base block size is 32 MB and they upgraded the software from 8 MB to 32 MB on May 15, 2018.


Franklinlee
Franklinlee

Crypto enthusiast, collector, money lover.


All-things-Crypto
All-things-Crypto

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